delivery hero sells food delivery operations in germany to ......2018/12/21 · delivery hero se 1...
TRANSCRIPT
1 Delivery Hero SE
21st December 2018
Delivery Hero Sells Food Delivery Operations in Germany to Takeaway.com for Cash and Shares and Reinvests for Further Growth
AMAZING
FOOD
Our Clear Vision
Create an amazing on-demand experience
2
AMAZING
ORDERING
AMAZING
SERVICE
Delivery Hero SE
Transaction Overview
Closing of transaction is expected in H1 2019,
only subject to approval of Takeaway.com‘s EGM
3 Delivery Hero SE
Strong Corporate Governance
Delivery Hero to nominate one Takeaway Board seat
4 year standstill and standard non-compete
Cash Consideration
€508m cash consideration
Equity Consideration
Ownership of c. 18% in Takeaway.com pre-refinancing
Enables Delivery Hero to benefit further financially from any value creation that Takeaway.com may generate
Delivery Hero to nominate one independent Takeaway.com Supervisory Board member
4 year standstill and standard non-compete
Lock up on shares up until July 2019
Enterprise Value of c. €930m
Total Consideration
€930m1
Enterprise Value
Note:
1. Based on €44.40 per share equivalent to the last 10 day VWAP as of 19 December 2018
Delivering on Our Promise
4 Delivery Hero SE
9M18 order and revenue growth of 50% and 77%2
Number of restaurants grew by 51% YoY3
Remain in early stages of growth trajectory with online penetration still low (c. 10%)4
Growth as No.1 Priority
Guidance at IPO Status1
• >40% in short & mid-term • >30% in the long-term
Invest for Leadership
• Further build leadership positions across the most attractive markets
Build Tech & Product Leadership • Invest in innovation to build a third
generation on-demand platform
#1 leader in 33 of our 41 countries with c. 80% of GMV coming from #1 leadership
countries5
>6m own delivery orders per month, more than 2x own delivery orders of competitors combined in our markets in total6
>30m orders per month, more than 3x competitors’ combined in our markets in total7
Operating in more than 4,000 cities with own delivery riders now delivering
in c. 200 cities
Deployed personalized recommendations in 23 countries
Rolled out multi-vertical delivery platform in 9 countries
5. Excluding countries with (planned) divestments in foodora non-core assets (Australia, France, Italy and Netherlands)
6. Management estimates for our countries of operations post deconsolidation of Germany. Excluding orders from South Korea, Norway & Canada and our minority holdings Rappi and Glovo
7. Management estimates for our countries of operations post deconsolidation of Germany. Excluding orders from South Korea, Norway & Canada
Notes:
1. Numbers exclude Germany unless otherwise noted
2. Including Germany growth would be 46% and 66%, respectively. Revenue growth shown in constant currency
3. Including Germany growth would be 48%, in total we now have over 245,000 restaurants
4. Management estimate
Increased Growth and Larger Flexibility to Invest…
5 Delivery Hero SE
c. €1.0bn
€125m
€508m
c. €400m
Net Cash as ofQ3 2018
UndrawnRevolver
Cash Consideration from Takeaway.com
Pro-formaAvailable Cash
Notes:
1. Constant currency
2. Excludes restaurant cash
3. Delivery Hero currently has an undrawn €125m revolving credit facility available
DH INCLUDING GERMANY
9M18 9M18
Order YoY Growth
50% 46%
Revenue YoY Growth1
66% 77%
GMV YoY Growth1
50% 56%
2
DH EXCLUDING GERMANY (pro-forma)
3
Europe ex Germany
5m
103m
Monthly Orders1
Total Population
MENA
16m
242m
Asia
7m
663m
Americas
3m
225m
Total Market of c. €500bn with untapped potential
… In Large Markets with Untapped Opportunity…
6 Delivery Hero SE
call out of how much of our GMV is coming from clear number 1 positions now.
We had that slide in AP, not
sure if they ever used it after that
Asia
663m Total Population
332m Urban Population
7m Monthly Orders(1)
9 Number of Countries
6 Number of Countries with Leadership Position
Americas
225m Total Population
182m Urban Population
3m Monthly Orders(1)
10 Number of Countries
7 Number of Countries with Leadership Position
MENA
242m Total Population
160m Urban Population
16m Monthly Orders(1)
9 Number of Countries
9 Number of Countries with Leadership Position
Europe ex Germany
103m Total Population
71m Urban Population
5m Monthly Orders(1)
13 Number of Countries
11 Number of Countries with Leadership Position
Note:
1. As of Q3 2018
MENA Asia Americas Europe ex Germany
+66%
+52% +36%
+33%
INCREASING # OF ORDERS
Average Monthly Orders per Active Customer Over Time
Month 1 Month 68
… and with Higher Frequency as well as Higher
Engagement
Delivery Hero SE 7
Delivery Hero SE
High and increasing order frequency across all markets over time
Month 1 Month 68 Month 1 Month 68 Month 1 Month 68
Upgrading Our 2019 Investment Plan
8 Delivery Hero SE
Better and more accessible offering, with higher
coverage and awareness leads to deeper penetration
and decreasing CAC
Powerful Network
Effect MARKETING
Accelerate customer
acquisition with improving
customer acquisition costs
AFFORDABILITY
Tap into more customers with
reduced delivery fees and
minimum order sizes
SALES
Increase restaurant coverage
in under-penetrated cities,
neighbourhoods & rural areas
TECHNOLOGY AND PRODUCT
Continuous innovation to
improve on-demand
experience for consumers and
restaurant partners
Appreciating The Long Term Return On Investments
MEDIUM TERM LONGER TERM
Increasing Investments with Net Adj. EBITDA Impact of Negative €250m
(Equal to approximately half of cash proceeds from the transaction)
New Investment Plan Expected Impact
€45m incremental revenue impact expected in 2019
€81m incremental recurring revenue per year starting in 2020
Proven Ability to Deploy Incremental Investment at
High Returns: €80m in H2 2018
9 Delivery Hero SE
Notes:
1. Asia refers to Asia excluding Korea
2. Average New Customers per month per quarter
3. Average CPA per quarter Q418 YTD returning 1 month frequency includes only October 2018
Q1 18 Q2 18 Q3 18 Q4 18 YTD
Materially Increased New
Customer Growth
Q1 18 Q2 18 Q3 18 Q4 18 YTD
ASIA1 - NEW CUSTOMERS2
Q1 18 Q2 18 Q3 18 Q4 18 YTD
ASIA1 - COST PER ACQUISITION (CPA)3
ASIA1 - MONTH 1 FREQUENCY4
Increased Marketing With
Flat to Lower CPAs
Higher Frequency Customers
Resulting in acceleration in orders and higher customer lifetime values
4. Defined as number of orders divided by cohort acquisitions, calculated as three month average
5. Q418 YTD returning 1 month frequency includes only October 2018
5
c. €1.10bn €45m
PreviousConsensus
Germany(Management Est.)
Implied Consensusex. Germany
Incremental fromNew Investments
Core BusinessOverperformance
NewGuidance
FY19E Revenue Guidance
10 Delivery Hero SE
Notes:
1. FY2018 excludes countries with (planned) divestments in foodora non-core assets (Australia, France, Italy and Netherlands). As per previous guidance, revenue guidance is pre-discount
2. FY2019 excludes Germany and other countries with (planned) divestments in foodora non-core assets (Australia, France, Italy and Netherlands). As per previous guidance, revenue guidance is pre-discount
1
c. €1.08bn
c. €1.15bn
+€930m
Enterprise Value from transfer of Germany
(€250m)
Increased investment with negative Net Adj. EBITDA impact
+ c.€680m
Resulting value
Investment Impact:
2
Investment Impact (€m):
c. €400m
€508m
€422m
€284m
Equity Value Bridge
11 Delivery Hero SE
Enterprise Value ex Germany1
Equity Value Ex Germany1
Portfolio Value of Minority Holdings4
Net Cash as of Q3 20182
Cash Consideration
18% Stake in Takeaway.com3
c. €1.6bn
Notes:
1. Illustrative value
2. Excludes restaurant cash
3. Based on €44.40 per share equivalent to the last 10 day VWAP as of 19 December 2018
4. Latest Portfolio Valuation of all our minority interests as per our 3Q18 results
Updated Outlook
12 Delivery Hero SE
2018E Guidance1: 2019E Guidance2:
Revenue guidance
€780m to €785m
-5% to -8% plus additional investments
of up to €80m
-€270m to -€320m which includes additional investment across all segments
with a negative Net Adj. EBITDA impact of €250m
Revenues
Adj. EBITDA Adj. EBITDA
• MENA expected full year Adj. EBITDA of €70m after increased investments
• Europe expected to reach breakeven during H2 2019
Revenue guidance
€1.08bn to €1.15bn
Revenues
Notes:
1. FY2018 excludes countries with (planned) divestments in foodora non-core assets (Australia, France, Italy and Netherlands). Revenue guidance is pre-discount
2. FY2019 excludes Germany and other countries with (planned) divestments in foodora non-core assets (Australia, France, Italy and Netherlands). Revenue guidance is pre-discount
17% 51%
22%
10%
Delivery Hero Outlook 2019 at a Glance:
Best-in-class Performance and Global Leadership LHS: hybride model
Own delivery Restaruant del Multi category
(restaurant & grocery) RHS: Bullets relating to
own delivery and multivertical
17% 51%
22%
10%
SPLIT # OF ORDERS
9M18 Orders
(€126m)
(€67m) (€61m)
(€2m)
Old 2019E New 2019E Old 2019E New 2019E
DH Europe DH Group
(11%) (7%) (21%) (2%)
(€126m)
(€67m)
Old 2019E New 2019E
(11%) (7%)
Share of MENA, Asia and Americas
Europe 25%
MENA 46%
Asia 20%
Americas 9%
Pre-Transaction Europe
19%
MENA 45%
Asia 27%
Americas 10%
Europe 29%
MENA 39%
Asia 23%
Americas 9%
v2 “more content”
Move some of the content from the old 3rd generation slide here esp: “adapting to trends”
Same revenues
Strong liquidity bridge
Financially stronger
Stronger buisiness
Wrap up
18% equity stake in Takeaway.com3 alongside other minority holdings (with LPV of €284m)
33 c. €1.1bn
Revenue guidance of €1.08-1.15bn for FY19E
9
€1.0bn Pro-forma Available Cash
Scale Leadership Technology
Cash
Value Creation
Leadership positions from 41 countries1
+77%
9M18 Revenue Growth2
Growth
Markets with multi-vertical delivery platform rolled out
13 Delivery Hero SE
Notes:
1. Excluding countries with (planned) divestments in foodora non-core assets (Australia, France, Italy and Netherlands)
2. Constant currency; excludes Germany
3. 18% of the total issued and outstanding share capital of Takeaway.com N.V. after the issuance of the equity component to Delivery Hero, but prior to any issuance of shares required to (re)finance all or part of the cash component of the consideration
2019 Financial Calendar
15 Delivery Hero SE
Event Release Date
Full-year 2018 Trading Update
Annual Results 2018 / Report
Q1 2019 Trading Update
2019 Annual General Meeting
Half-year 2019 Report
Q3/9M 2019 Trading Update
06-Feb-2019
25-Apr-2019
08-May-2019
12-Jun-2019
04-Sep-2019
07-Nov-2019
Delivery Hero: KPIs Post Transaction (1/2)
16 Delivery Hero SE
2017 2018
in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 9M
Delivery Hero Group (ex. Germany)
Orders 52.9 58.2 111.1 63.4 73.8 248.3 80.2 86.4 166.6 94.5 261.1
% YoY Growth 51.8% 48.3% 50.0% 49.0% 49.6%
GMV 681.4 739.8 1,421.2 801.7 907.9 3,130.8 970.7 1,041.1 2,011.8 1,150.0 3,161.8
% YoY Growth 42.5% 40.7% 41.6% 43.4% 42.2%
% YoY Growth (constant currency) 59.4% 55.6% 57.4% 54.4% 56.3%
Revenue 88.1 97.4 185.5 106.4 125.5 417.4 137.7 154.5 292.2 175.9 468.1
% YoY Growth 56.2% 58.7% 57.5% 65.3% 60.4%
% YoY Growth (constant currency) 73.9% 74.0% 74.0% 82.6% 77.1%
Delivery Hero Europe (ex. Germany)
Orders 10.0 10.5 20.5 10.0 12.1 42.6 13.8 14.6 28.4 14.3 42.8
% YoY Growth 37.9% 39.1% 38.5% 43.5% 40.2%
GMV 128.4 131.8 260.2 130.8 156.4 547.4 173.1 173.2 346.3 174.8 521.1
% YoY Growth 34.8% 31.4% 33.1% 33.7% 33.3%
% YoY Growth (constant currency) 35.7% 32.8% 34.2% 36.1% 34.9%
Revenue 21.2 21.9 43.1 21.5 24.9 89.5 27.4 27.4 54.8 27.6 82.3
% YoY Growth 29.1% 25.1% 27.1% 28.5% 27.5%
% YoY Growth (constant currency) 30.6% 26.8% 28.7% 31.1% 29.5%
Delivery Hero Germany
Orders 6.7 6.9 13.6 7.2 7.8 28.5 8.0 7.4 15.4 7.9 23.4
% YoY Growth 19.2% 8.3% 13.7% 10.7% 12.7%
GMV 1 128.6 130.6 259.2 138.7 152.7 550.7 157.0 147.1 304.1 157.7 461.8
% YoY Growth 22.1% 12.6% 17.3% 13.6% 16.0%
% YoY Growth (constant currency) 22.1% 12.6% 17.3% 13.6% 16.0%
Revenue 21.4 21.7 43.1 22.7 24.3 90.1 25.5 24.7 50.2 25.9 76.1
% YoY Growth 19.2% 14.0% 16.6% 14.1% 15.7%
% YoY Growth (constant currency) 19.2% 14.0% 16.6% 14.1% 15.7%
Note:
1. Q1, Q2 2017 numbers revised from €130.4m and €131.1m respectively
Delivery Hero: KPIs Post Transaction (2/2)
17 Delivery Hero SE
2017 2018
in €m Q1 Q2 H1 Q3 Q4 FY Q1 Q2 H1 Q3 9M
Asia
Orders 11.4 12.8 24.2 14.5 16.5 55.1 17.6 18.7 36.3 21.9 58.2
% YoY Growth 53.8% 46.9% 50.2% 50.6% 50.3%
GMV 185.0 200.4 385.4 211.0 247.6 844.0 261.7 280.0 541.7 317.4 859.1
% YoY Growth 41.4% 39.8% 40.6% 50.4% 44.1%
% YoY Growth (constant currency) 52.7% 45.7% 49.0% 48.7% 48.9%
Revenue 27.6 31.0 58.6 31.1 37.6 127.3 39.9 44.7 84.6 50.8 135.4
% YoY Growth 44.7% 44.2% 44.4% 63.2% 50.9%
% YoY Growth (constant currency) 56.4% 50.2% 53.1% 61.3% 56.0%
MENA
Orders 25.7 28.3 53.9 31.7 37.5 123.1 41.1 44.2 85.4 48.7 134.1
% YoY Growth 60.4% 56.5% 58.3% 53.8% 56.6%
GMV 288.5 313.2 601.7 366.2 402.0 1,369.9 439.8 479.9 919.7 549.7 1,469.3
% YoY Growth 52.4% 53.2% 52.8% 50.1% 51.8%
% YoY Growth (constant currency) 76.6% 74.6% 75.6% 64.7% 71.4%
Revenue 29.6 32.7 62.3 41.8 49.2 153.3 56.6 66.7 123.3 85.0 208.3
% YoY Growth 91.5% 103.8% 97.9% 103.4% 100.1%
% YoY Growth (constant currency) 121.5% 130.1% 126.1% 117.6% 122.7%
Americas
Orders 5.8 6.7 12.4 7.3 7.8 27.5 7.7 8.8 16.5 9.6 26.1
% YoY Growth 33.8% 31.1% 32.4% 32.6% 32.5%
GMV 79.4 94.5 173.9 93.7 101.9 369.5 96.1 108.0 204.2 108.1 312.3
% YoY Growth 21.1% 14.3% 17.4% 15.3% 16.7%
% YoY Growth (constant currency) 51.0% 45.8% 48.1% 52.7% 49.7%
Revenue 9.8 11.8 21.5 12.0 13.8 47.4 13.8 15.8 29.6 12.5 42.1
% YoY Growth 40.7% 34.3% 37.2% 4.0% 25.3%
% YoY Growth (constant currency) 73.1% 68.5% 70.6% 108.0% 84.0%
Important Notice
ALL FINANCIAL FIGURES INCLUDED IN THE FOLLOWING PRESENTATION ARE BASED ON IFRS, UNLESS NOTED OTHERWISE.
For the purposes of this notice, “presentation” means this document, its contents or any part of it. This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any part of it form the basis of or be relied upon in connection with or act as any inducement to enter into any contract or commitment or investment decision whatsoever.
This presentation is neither an advertisement nor a prospectus and should not be relied upon in making any investment decision to purchase, subscribe for or otherwise acquire any securities. The information and opinions contained in this presentation are provided as at the date of this presentation, are subject to change without notice and do not purport to contain all information that may be required to evaluate Delivery Hero SE. Delivery Hero SE undertakes no obligation to update or revise this presentation. No reliance may or should be placed for any purpose whatsoever on the information contained in this presentation, or any other information discussed verbally, or on its completeness, accuracy or fairness.
The information in this presentation is of preliminary and abbreviated nature and may be subject to updating, revision and amendment, and such information may change materially. Neither Delivery Hero SE nor any of its directors, officers, employees, agents or affiliates undertakes or is under any duty to update this presentation or to correct any inaccuracies in any such information which may become apparent or to provide any additional information.
The presentation and discussion contain forward looking statements, other estimates, opinions and projections with respect to anticipated future performance of Delivery Hero SE (“Forward-looking Statements”). These Forward-looking Statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “aims”, “plans”, “predicts”, “may”, “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These Forward-looking Statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding Delivery Hero SE’s intentions, beliefs or current expectations concerning, among other things, Delivery Hero SE’s prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forward-looking Statements involve significant risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, past performance should not be taken as an indication of future results, and nor representation or warranty, express or implied, is made regarding future performance. The development of Delivery Hero SE’s prospects, growth, strategies, the industry in which it operates, and the effect of acquisitions on Delivery Hero SE may differ materially from those made in or suggested by the Forward-looking Statements contained in this presentation or past performance. In addition, even if the development of Delivery Hero SE’s prospects, growth, strategies and the industry in which it operates are consistent with the Forward-looking Statements contained in this presentation or past performance, those developments may not be indicative of Delivery Hero SE’s results, liquidity or financial position or of results or developments in subsequent periods not covered by this presentation. Any Forward-Looking Statements only speak as at the date of this presentation is provided to the recipient and it is up to the recipient to make its own assessment of the validity of any Forward-looking Statements and assumptions. No liability whatsoever is accepted by Delivery Hero SE in respect of the achievement of such Forward-looking Statements and assumptions.
18 Delivery Hero SE